When you are looking to snatch up a property before someone else comes along, you need to act quickly, but before you call your California Private Money lender, there are four things about the property you may want to consider.
One of the toughest things an investor has to do is keep from getting too excited about a property. It can be real easy to see something, for whatever reason fall in love with it, and then lose all sense of objectivity when evaluating it as an investment. There is nothing worse than revisiting it days or weeks later with fresh eyes and seeing everything you didn’t before.
So before you jump the gun, call your California Private Money lender and commit yourself to expensive loan, there are certain things you may want to consider first.
Before You Call Your California Private Money Lender…
One of the great things about a private money lender is the ability to get a loan fast tracked and the money in hand needed to secure a property. However, before you get the ball rolling, make sure you take four things into consideration:
Property Location: You’ve heard it before—location! Location! Location! A good location can save the worst of properties. People don’t want to buy the city dump, but if the dump has a prime spot in the local mall or a great view of the ocean, that may be enough for an investor. The investor will in turn be more than happy to fix up the property and sell or rent it for a small fortune.
Property Condition: Location has a lot to do with the value of a property, but if it is in deplorable condition, it may still be difficult to sell. At the same time, beware taking on a project that is a clear fixer upper. Once you start working on it, there is no telling what you may find. Be aware of just how bad the condition may be so you don’t find yourself biting off more than you can chew.
Price: Of course you want to take a look at the price! Everyone knows that, but the question is why? If it appears to be too high, do they know something you don’t? There must be a reason why the price is what it is. If it is too low, you have to wonder why they don’t want more. Do they just want to get rid of it? Is there a drainage, electrical, or some other kind of issue brewing? If it will cost a lot to rehab the property, is that factored in to the price tag?
After Rehab Value: This will more than likely be why you call your California Private Money Lender. What can you sell the property for after you fix it up? Will it be worth paying what they are asking for it and the rehab expenses? Or do you need to negotiate a lower price? Can you make enough money off the rehabbed property to make it worth buying?
Your Private Money Checklist
Decisions involving investments are often pretty hard to make. You don’t want to rush into anything, but at the same time, you don’t want to wait too long and lose an opportunity. So if you are an investor or someone looking into it, you should keep a checklist in mind to help you make objective decisions on things.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.
Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.